Gateway shuts down in Australia

Computer giant Gateway will immediately close operations in Australia, New Zealand, Malaysia, Singapore and Japan as it axes a quarter of its 24,600 global staff.

In a dramatic worldwide retreat, Gateway said it would also decide within 30 days whether to withdraw from Europe as it focuses instead on slimmed-down US operations in the face of falling sales.

Gateway lost $US9 million ($17.03 million) in the second quarter of this year as the slumping computer market sent sales plunging to $US1.5 billion from $US2.207 billion (down to $2.84 billion from $4.18 billion) a year earlier.

The sweeping restructure will reduce US staff ranks by 15 per cent and the global work force by 25 per cent.

"As tough as these decisions were to make, we are doing all the right things to create a new company with a uniquecompetitive edge and a healthy, profitable future," said Gateway chairman and chief executive Ted Waitt in a statement.

"As a result, the company announced it will immediately close all of its company-owned operations in Malaysia, Singapore,Japan, Australia and New Zealand.

"The company is currently engaged in the employee consultation process in key European markets regarding a proposal toexit those markets as well," the statement said.

The restructuring would likely lead to a one-off charge of about $US475 million ($898.77 million) in the third quarter ofthis year, including $150 million in cash, it said.

But a $US300 million ($567.64 million) in costs and expenses would be saved every year, Gateway forecast.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Sandra Van Dijk

Computerworld
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?